Econ Chapter 17

  1. (1) An outward shift in the production possibilities curve that results from an increase in resource supplies or quality or an improvement in technology; (2) an increase of real output (gross domestic product) or real output per capita
    economic growth
  2. An increase in the availability of a resource, an improvement in its quality, or an expansion of technological knowledge that makes it possible for an economy to produce a greater output of goods and services
    supply factor (in growth)
  3. The increase in the level of aggregate demand that brings about the economic growth made possible by an increase in the production potential of the economy
    demand factor (in growth)
  4. The capacity of an economy to combine resources effectively to achieve growth of real output that the supply factors (of growth) make possible
    efficiency factor (in growth)
  5. Total output divided by the quantity of labor employed to produce it; the average product of labor or output per hour of work
    labor productivity
  6. the percentage of the working age population that is actually in the labor force
    labor-force participation rate
  7. the capital goods usually provided by the public sector for the use of its citizens and firms (for example, highways, bridges, transit systems, waste water treatment facilities, municipal water systems, and airports)
  8. the knowledge and skills that make a person productive
    human capital
  9. reductions in the average total cost of producing a product as the firm expands the size of plant (its output)
    economies of scale
  10. the label attached by some economists and the popular press to the US economy since 1995. The main characteristics are accelerated productivity growth and economic growth, caused by rapid technological advance and the emergence of the global economy.
    New Economy
  11. new and more efficient methods of delivering and receiving information through use of computers, fax machines, wireless phones, and the Internet
    information tecnhology
  12. a new firm focused on creating and introducing a particular new product or employing a specific new production or distribution method
    start-up (firm)
  13. an increase in a firm's output by a larger percentage than the percentage increase in its inputs
    increasing returns
  14. increases in the value of a product to each user, including existing users, as the total number of users rises
    network effects
  15. achieving greater productivity and lower average total cost through gains in knowledge and skill that accompany repetition of a task; a source of economies of scale
    learning by doing
Card Set
Econ Chapter 17